LONDON – European stocks were lower on Friday morning as investors closely watched a series of central bank decisions and data releases.
Pan-European Stoke 600 As of 11 a.m., the London stock index’s decline expanded to 0.85%, and bank stocks fell 1.8%.
Carlsberg British soft drinks maker Britvic dropped 8% after confirming it had rejected two unsolicited takeover offers from the Danish drinks giant, saying the latest offer of 1,250 pence per share “significantly undervalued” the company. British After the news was announced, the stock price rose 11%.
Stock markets have shaken off much of last week’s negative sentiment after populist, far-right parties made strong gains in European Union parliamentary elections. Even the French CAC 40 The index is heading for weekly gains after being hit by the country’s shock election announcement, although EUR The euro zone remains on the back foot as investors brace for a possible far-right victory in the bloc’s second-largest economy.
Option volatility indicates traders believe the risk of large currency moves is greater in France than in France GBP According to Reuters, this is the result of the upcoming general election in the UK.
This week attention turned to central bank action, with the Swiss National Bank announcing a 0.25 percentage point cut in interest rates to 1.25%. Back in March, the Swiss National Bank became the first major central bank to cut interest rates this cycle.
Meanwhile, the Bank of England kept interest rates unchanged at a 16-year high of 5.25%. Economists largely detected a dovish tone in policymakers’ latest messages as they described a “delicately balanced” decision not to cut rates, although money market bets on an August rate cut had fallen back to around 40% by Friday.
Data released on Friday showed UK retail sales Up 2.9% in Maywell ahead of forecasts for 1.5% growth and rebounding from a sluggish performance in April when shoppers were kept away by wet weather.
Denn Evans, EMEA, said: “After a slow start to the year, retailers can take comfort in a recovery in retail sales in time for the summer – when events from the European Championships to the Olympics Major sporting events such as these may also improve the trading environment.
Other releases on Friday include a French version business confidenceremained stable for the third consecutive month, and German and British Purchasing managers index data has initially emerged, overall showing a slowdown in recent business activity growth.
Asia-Pacific markets lower on Friday Japan core inflation data for May Slightly cooler than expected.
U.S. stock futures were little changed in early trading.
CNBC Pro’s stock picks and investing trends
About The Author
